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On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of P4,000,000 and 1,600,000, respectively. Included in Entity B's liabilities are cash dividends of 280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. sirement: Compute for the goodwill.

On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of P4,000,000 and 1,600,000, respectively. Included in Entity B's liabilities are cash dividends of 280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. sirement: Compute for the goodwill.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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liabilities assumed have deferred tax consequences, but do not affect their tax bases. The income tax rate is 30%. Requirement: Compute for the goodwill. 4M-494m > (940K Consideration transferred 10. On October 26, 20x1, Entity A acquired 100% interest in Entity B for P2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of 4,000,000 and 1,600,000, respectively. Included in Entity B's liabilities are cash dividends of P280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. Requirement: Compute for the goodwill.
Transcribed Image Text:liabilities assumed have deferred tax consequences, but do not affect their tax bases. The income tax rate is 30%. Requirement: Compute for the goodwill. 4M-494m > (940K Consideration transferred 10. On October 26, 20x1, Entity A acquired 100% interest in Entity B for P2,800,000. On this date, Entity B's identifiable assets and liabilities have fair values of 4,000,000 and 1,600,000, respectively. Included in Entity B's liabilities are cash dividends of P280,000 declared on October 1, 20x1, to shareholders of record on November 1, 20x1, and payable on December 1, 20x1. Requirement: Compute for the goodwill.
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